Answer to Question #46075 in Economics of Enterprise for hlengiwe

Question

Calculate the marginal income if 32 units were to be sold.

Answer 1

Marginal revenue (income) is the additional revenue that will be generated by increasing product sales by 1 unit. It can also be described as the unit revenue the last item sold has generated for the firm. In a perfectly competitive market, the additional revenue generated by selling an additional unit of a good is equal to the price the firm is able to charge the buyer of the good. But in our case there is not enough information to calculate marginal income.